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British Airways Has Profitable 2003
British Airways today reported a group profit before tax for the year 2003 of £230 million (€345 million) against a £135 million (€197 million) profit in the previous year. Operating profit in the year, at £405 million (€608 million), was £110 million (€165 million) better than last year.
The operating margin of 5.4 percent was 1.6 points better than last year. The improvement in operating profit reflects the continuing focus on cost reduction initiatives, particularly the delivery of the Future Size and Shape (FSAS) program. Revenue was down 1.7 percent reflecting the impact of the war in Iraq, SARS and economic weakness in the first half of the year. Passenger yields for the year were down 4.3 percent per revenue seat kilometer; load factor was up 1.1 points at 73.0 percent on capacity 1.5 percent higher in available seat kilometers.
Cargo volumes for the full year (CTKs) were up 6.0 percent compared with last year, with yields down 9.7 percent. Overall load factor for the full year was up 1.0 point at 67.6 percent.
For the twelve months, unit costs excluding a Concorde charge (pence/ATK) improved by 4.6 percent on the same period last year. This reflects a net cost reduction of 2.2 percent on capacity 2.5 percent higher in ATKs.
For the quarter, unit costs (pence/ATK) excluding the Concorde charge improved by 3.9 percent on the same period last year. This reflects a net cost increase of 2.5 percent on capacity 6.7 percent higher in ATKs. Total unit costs (pence/ATK) improved by 8.6 percent.
The net cost increase primarily reflected increases in employment costs, up 12.1 percent due mainly to the increase in pension costs and fuel costs, up 10.7 percent due to increases in fuel price net of hedging. This was partially offset by reductions in selling costs, down 7.1 percent due to the restructuring of travel agents’ commission and growing on-line sales, and aircraft operating lease costs, down 31.7 percent.
British Airways Has Profitable 2003
British Airways today reported a group profit before tax for the year 2003 of £230 million (€345 million) against a £135 million (€197 million) profit in the previous year. Operating profit in the year, at £405 million (€608 million), was £110 million (€165 million) better than last year.
The operating margin of 5.4 percent was 1.6 points better than last year. The improvement in operating profit reflects the continuing focus on cost reduction initiatives, particularly the delivery of the Future Size and Shape (FSAS) program. Revenue was down 1.7 percent reflecting the impact of the war in Iraq, SARS and economic weakness in the first half of the year. Passenger yields for the year were down 4.3 percent per revenue seat kilometer; load factor was up 1.1 points at 73.0 percent on capacity 1.5 percent higher in available seat kilometers.
Cargo volumes for the full year (CTKs) were up 6.0 percent compared with last year, with yields down 9.7 percent. Overall load factor for the full year was up 1.0 point at 67.6 percent.
For the twelve months, unit costs excluding a Concorde charge (pence/ATK) improved by 4.6 percent on the same period last year. This reflects a net cost reduction of 2.2 percent on capacity 2.5 percent higher in ATKs.
For the quarter, unit costs (pence/ATK) excluding the Concorde charge improved by 3.9 percent on the same period last year. This reflects a net cost increase of 2.5 percent on capacity 6.7 percent higher in ATKs. Total unit costs (pence/ATK) improved by 8.6 percent.
The net cost increase primarily reflected increases in employment costs, up 12.1 percent due mainly to the increase in pension costs and fuel costs, up 10.7 percent due to increases in fuel price net of hedging. This was partially offset by reductions in selling costs, down 7.1 percent due to the restructuring of travel agents’ commission and growing on-line sales, and aircraft operating lease costs, down 31.7 percent.
